Weak outlook: firms slash profit expectations

The Dun & Bradstreet Profit Expectations Index, released on Monday, fell 12 points to an index level of 11 for the three months to June 2013, indicating a smaller proportion of business expect to post increases in profits than in the previous survey.

The outlook for sales fell for a second straight quarter, to an index level of 10, while the outlook for selling prices fell to an index level of one, its lowest point since the survey started in 1988.

The index is compiled from the results of a survey of 1200 business owners and senior executives.

‘‘With forecasts for sales and prices being lowered, in tandem with a more conservative attitude to spending from Australian consumers, it appears that businesses are anticipating their profits will be squeezed,’’ she said.